Lucky Obukohwo Reporting
The Nigerian Association of Road Transport Owners (NARTO) has called on the Federal Government to immediately remove the 7.5per cent Value Added Tax (VAT) on the Automotive Gas Oil (AGO), also known as diesel to enable them distribute petroleum to the nooks and crannies of the states.
NARTO National President, Alhaji Yusuf Lawal Othman, who made the appeal in a statement on Tuesday, explained that diesel is the product that powers about 90% of the haulage trucks which distribute petrol and other products nationwide.
According to him, prior to the introduction of VAT on diesel, the product was sold for N600/litre on average but now hovers around N1,000/litre, which has also increased the cost of transporting petrol.
He also fingered terrible roads, high cost of dollars, trucks, spare parts and batteries as other factors peppering them and threatening to crumble their operations if nothing is done to quickly avert it.
Othman added that despite the high operation cost, the government has stopped further increases in the pump price of PMS, thus suffocating them. He, however, noted that since the marketers cannot raise their pump price, it was impossible for them to hike their cost of transportation.
According to him, this has made the cost of doing the business unbearable.
He said: “We are talking about now, an immediate solution. And the instant intervention is the removal of 7.5% VAT on the diesel because it is increasing the cost of the diesel.
“NARTO is complaining that the high cost of diesel is unbearable. Transporters have found themselves in a helpless situation. Even if you discuss it with the marketers, all they tell you is that the government has fixed the pump price on N617 and that they cannot increase the pump price so they cannot increase the fare for us. So we are in trouble.”
While noting that going on strike was not being considered, he urged the government to immediately act to avert petrol supply disruption.
On bad roads, Othman said: “From Okpella to Lokoja is bad. From Agai to Bida to Kutugi is bad
“All the spare parts, engine, battery and others are all factors of dollar rate. They have gone up. The engine oil, which is also a factor of dollar rate, has also gone up but our transportation charges remain the same.
“So, We need serious government attention and it should be urgent”, he stated.
The National President said the union was not necessarily interested in the increase in pump price since Nigerians are already suffering.
“But if they don’t increase our transportation cost with AGO at N1,000 and dollars close to N1,000, we cannot operate.
“And if we don’t operate profitably we will start parking and if we start parking, it will generate unwanted supply disruption, which we don’t want”, Othman said.